The EU-India Relationship at 60: Where is it headed in 2023?

Last year in 2022, the EU and India marked the 60^th anniversary of their bilateral relationship, making it one of the longest-existing relations between the European Union (EU) and an Asian country. As the world’s two largest democracies, the EU and India have a long history of shared values, political exchanges, and common interests. The EU-India relations are based on a multi-dimensional agenda, ranging from socio-economic issues, effective multilateralism, and rules-based order up to security cooperation. This article will be exploring the core elements of EU-India relations, including trade, security cooperation and the partnership’s role in the Indo-Pacific, with a particular emphasis on how these dynamics have shaped the prospects of the partnership for the future. To begin with, it is important to examine the core fundamentals of the EU-India ties which emerged out of the 2004 strategic partnership agreement between the two actors (India being one of only four EU strategic partner countries in Asia together with China, Japan, and South Korea). The EU-India agreement of 2004 not only set out the strategic contours of the relationship but it also created an impetus for collaboration in other areas that sought to address wider issues, including trade, energy efficiency, food security, employment rights, and public health. This type of partnership was seen as beneficial not just for the two entities involved but also for global interests as it highlighted the capabilities of European-based technology, with Indian companies becoming more competitive and diversifying their markets. Yet despite starting negotiations on a free trade agreement in 2007, the talks dragged on and were suspended in 2013 due to the lack of ambition. It took nine years and changes in the geopolitical and geoeconomic landscape to have the coveted impact. Following a push by the EU and Indian leaders in 2021 and the visit by the President of the European Commission. Ursula von der Leyen to India in April 2022, the talks were finally relaunched in June 2022. The first round of renewed negotiations was hosted by New Delhi in the summer of 2022 and the two sides agreed to fast-track the talks with the target of concluding the deal by the end of 2023. At present, there are numerous value chains in the EU-India trade relationship that include investments in science and technology, renewable energy, services, goods, and infrastructure. These investments have grown steadily over the years, and it is expected that this growth will continue in the future. For example, India is the EU’s tenth-largest trading partner and the EU is India’s third-largest trading partner after the US and China, accounting for nearly 11 percent of its total trade. Total bilateral trade between the two sides has now reached over 95.5 billion euros and is expected to continue to grow in the coming years.

Efforts to conclude the EU-India trade agreement and the development of new mechanisms for e-commerce could lead to an even deeper level of trade liberalisation in the near future when international free trade is under threat.

In addition to the strategic importance of the EU-India trade in times when value chains are under duress, this key trade partnership provides global benefits in terms of market access and economic cooperation. Efforts to conclude the EU-India trade agreement and the development of new mechanisms for e-commerce could lead to an even deeper level of trade liberalisation in the near future when international free trade is under threat. This would not only result in more vibrant EU-India economic relations, and provide much-needed momentum to the overall European and Indian growth trajectories in the face of rising economic tensions and costs of living, but also help the global economy. Moreover, in 2021, the EU concluded a connectivity partnership with India which builds on the EU’s Global Gateway strategy from the same year and is the EU’s own response to China’s BRI. The EU-India connectivity partnership – the only one after a similar agreement with Japan (2020) – aims at boosting sustainable digital, transport and energy networks, and the flow of people, goods, services, data and capital centred on mutual equity and inclusivity. In terms of security cooperation, the EU-India partnership has been deepening, especially over the last few years. It has become an important source of stability with wider implications for the Indo-Pacific region, including through closer collaboration on defence issues. In particular, cooperation on counter-terrorism, maritime security, and cyber security have been areas of mutual interests. This has been demonstrated through various forms of defence engagements at different levels such as ministerial exchanges and high-profile dialogues. Nonetheless, what particularly stands out is a joint naval exercise in the Gulf of Aden in June 2021 when the Indian Navy frigate Trikand joined the EU anti-piracy Operation Atalanta as well as a few other EU Member State vessels. These exercises demonstrate the trust between the states involved, the depth of the commitment to their security cooperation, and the potential of such a strong partnership to have vast impacts on the development and stability of the region. Ultimately, this will lead to a stronger and more integrated world and provide greater security benefits for all stakeholders. With the EU’s growing interest in the Indo-Pacific region, particularly since its adoption of the Indo-Pacific Strategy in 2021, the EU and India have also continued to express their mutual commitment to a shared vision of a peaceful, prosperous, and secure Indo-Pacific through various joint initiatives and regional security dialogues. Greater security cooperation between the EU and India in the Indo-Pacific region would provide a much-needed boost to regional security and oversee the rise of a stable and prosperous region. In this regard, initiatives such as joint naval exercises could serve as examples of what can be achieved when states come together in shared interests.

With the EU’s growing interest in the Indo-Pacific region, particularly since its adoption of the Indo-Pacific Strategy in 2021, the EU and India have also continued to express their mutual commitment to a shared vision of a peaceful, prosperous, and secure Indo-Pacific through various joint initiatives and regional security dialogues.

As India continues to grow into a major global player, and the EU looks for ways to protect its interests in an increasingly interconnected world, it is essential that these two states work together to ensure that their partnership remains a positive force for stability and development in the Indo-Pacific region and beyond. The success of the EU-India relationship will be dependent upon the ability of the two entities to build trust, respect each other’s interests, and realise mutual gains in the future. Despite initial divergencies on how to react to Russia’s war of aggression against Ukraine that cast a shadow over the EU-India relationship, it seems that India has been slowly coming to terms with the EU’s approach. After all, the war is not a regional conflict at the fringes of Europe but has a multitude of global repercussions, ranging from worldwide energy and food crises to the paralysis of international institutions, including the UN Security Council. Apart from the war in Ukraine, the heightened tensions with China across the Taiwan Strait and South China Sea, as well as between India and China, show clearly that the questions of territorial integrity and inviolability of state borders are relevant more than ever. It is, therefore important that both the EU and India see one another’s security concerns not as geographically distant issues but as ongoing crises that affect both the bilateral relationship and international affairs more broadly.

The increasing cooperation between the EU and India has implications beyond bilateral ties, as it signals a commitment to ensuring peace and prosperity in the wider region.

In the past 60 years, the EU and India have developed strong and deep relations based on a common agenda of socio-economic development and security cooperation inside and outside of the Indo-Pacific region. This partnership is created on the idea of shared values and interests, evidenced by the numerous trade links and defence cooperation. As this partnership continues to grow and expand in the coming years, it is likely to remain an important source of global stability and a driver of economic growth in the Indo-Pacific and beyond. Moreover, the increasing cooperation between the EU and India has implications beyond bilateral ties, as it signals a commitment to ensuring peace and prosperity in the wider region. With India taking the helm of G20, New Delhi will have even greater responsibility for saving the multilateral world order – which is the core issue that lies at the heart of EU foreign policy as well. The EU-India relationship has therefore all the prerequisites to flourish even further in 2023. It will be up to political leaders – as well as the people of both regions – to make it happen this year.

• International Affairs
• European Union
• India
• bilateral relationship
• EU-India
• food security
• Indo-Pacific
• security
• socio-economic
• Technology
• trade

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